Veritas (India) Ltd has obtained shareholder approval for the proposed sale and transfer of certain assets and liabilities of its UAE-based subsidiary Verasco FZE, as the changing commercial outlook around the Strait of Hormuz prompts a review of its overseas asset portfolio.
The approval was obtained in January 2026 following a comprehensive assessment of the assets. The UAE’s decision to develop ports on its east coast, outside the Strait, has altered the long-term commercial outlook for assets located within the Strait.
Trading model turns more flexible
Amid restrictions on cargo movement through the Strait and volatile market conditions, the company adopted a more flexible, demand-driven and order-backed trading model in the UAE.
It also rationalised inventory, optimised working capital and reduced inventory price risk to strengthen operational agility and preserve capital.
Focus on disciplined growth
FY26 was marked by geopolitical uncertainty, shifting trade flows and volatility in crude oil and petroleum product prices. Despite the challenges, India’s resilient domestic demand, infrastructure investment and manufacturing growth continued to support long-term opportunities for petroleum trading.
“At Veritas (India), our focus remained on strengthening business resilience through disciplined execution, prudent capital allocation, and effective risk management,” said Managing Director Paresh V. Merchant in a letter to shareholders.
Outlook remains resilient
The company will continue to strengthen its trading platform and optimise supply chain efficiencies during FY27.
“We will maintain disciplined capital allocation and remain agile in responding to evolving regional and global market conditions. We are confident that our disciplined approach, combined with our continued focus on operational excellence, will support sustainable long-term value creation,” he said.
Company background
Veritas (India) Ltd is engaged in the trading and distribution of petroleum products and operates across domestic and international markets. The company has an overseas presence in the UAE and focuses on energy trading, supply-chain management and related activities.